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HomeMy WebLinkAbout22-38 - ADMIN Resolution - Economic Development Authority - 2022/09/06EDA Resolution No. 22-38 Resolution approving loan to Honey & Rye Bakehouse and documents relating thereto Whereas, the Saint Louis Park Economic Development Authority (the “EDA”) has previously established a Revolving Loan Fund (the “Program”) and established Revolving Loan Fund Guidelines (the “Guidelines”) relating to the administration thereof; and Whereas, the EDA has received a proposal from Pie in the Sky Properties LLC, a Minnesota limited liability company (the “Borrower”) that the EDA assist in financing costs associated with the acquisition and renovation of a building on certain real property in the City of Saint Louis Park, Minnesota (the “City”) enabling the expansion of the related Honey & Rye Bakehouse within the City by providing a loan to the Borrower in the amount of $200,000 (the “Loan”); and Whereas, the Loan will be made to the Borrower in accordance with the terms set forth in a certain Loan Agreement between the Borrower and the EDA (the “Loan Agreement”); and Whereas, Borrower’s obligations to repay the Loan will be evidenced by a Promissory Note (the “Note”) and secured by a Mortgage, Security Agreement, and Fixture Financing Statement providing a security interest in certain property of the Borrower, a Collateral Assignment of Leases and Rents from the Borrower, a Guaranty from Anne Andrus, and a Guaranty from Honey & Rye Bakehouse LLC, a Minnesota limited liability company (collectively, the “Loan Documents”); and Whereas, the Borrower has requested deviations from the Guidelines for the Loan including an extension of the repayment term of the Loan from 20 years to 25 years to match the Borrower’s Small Business Administration financing and a reduction of the owner’s required equity contribution to the project from 10% to 6.2%; and Whereas, the EDA has determined that the provision of the Loan and the execution of the Loan Documents is in the best interests of the City and its residents because it will help increase the tax base in the City, will help create jobs in the City, and will help an existing business expand its operation in the City. Now, therefore, be it resolved by the Board of Commissioners (the “Board”) of the St. Louis Park Economic Development Authority as follows: 1. The EDA hereby approves making the Loan to the Borrower in accordance with the terms of the Loan Documents and approves the Loan Documents, in substantially the forms presented to the Board, together with any related documents necessary in connection therewith, including without limitation all documents or certifications referenced in or attached to the Loan Documents and hereby authorizes the Executive Director to execute the Development Documents on behalf of the EDA, and to carry out, on behalf of the EDA, the EDA’s obligations thereunder when all conditions precedent thereto have been satisfied. DocuSign Envelope ID: 2AB6CCDA-AF82-4E54-A3F6-C7D63BC8FC91 EDA Resolution No. 22-38 2 2. The approval hereby given to the Loan Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the EDA and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the EDA. The execution of any instrument by the appropriate officers of the EDA herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Loan Documents shall not be effective until the date of execution thereof as provided herein. In the event of absence or disability of the authorized officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of legal counsel to the EDA, may act in their behalf. Reviewed for Administration: Adopted by the Economic Development Authority September 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary DocuSign Envelope ID: 2AB6CCDA-AF82-4E54-A3F6-C7D63BC8FC91